George Osborne puts away the chequebook and waves the veto

The Chancellor faced persistent scepticism from his own side on the Irish question. John Redwood spoke for many when he asked for an assurance that there will be no other bail-outs when the next euro basket-case comes begging. Mr Osborne reinforced his point that Britain's relationship with Ireland is unique and therefore justifies the bilateral loan. Those are connections "which we don't have have with any other country in the world," he said. Other Conservatives, notably David Ruffley and Bernard Jenkin, pressed him on whether he would be prepared to veto a new EU Treaty if it did not exempt the UK from the permanent EU bail-out mechanism due to be negotiated at the December council. This is the most pressing question facing the Chancellor, at least in the eyes of his own MPs. He appeared to give them the assurances they required by waving the British veto. "We would only accept a Treaty change if it creates a bail-out mechanism which we are not part of. Of course, a treaty change requires unanimity," was how Mr Osborne puts it.

There was no mistaking the unhappiness on the Conservative benches. MPs seemed to accept the national interest case put forward by Mr Osborne, but only just. In exchange, they demanded – and will tell us they got – two assurances: no more cash for euro bail-outs, and a British exemption from the new permanent euro rescue deal. No doubt wriggle-room may be found in Mr Osborne's words, but to my ear it sounded like he has put his cheque book away, and got out the veto card. Which is fine, but now he has to deliver.